Pure Harvest Smart Farms, a sustainable agritech, today announced that it has secured $60 million in growth funding through an Islamic structured finance solution, led by SHUAA Capital. This unique venture-debt solution is a highly structured Sukuk with embedded warrants.
The Abu-Dhabi-based agribusiness was established because the region needs local, sustainable food sources. Pure Harvest is soon to complete its third hybrid greenhouse growing system within the Emirates and is currently constructing its beachhead in Saudi Arabia. Additionally, it has announced a further EUR 39 million expansion project in Kuwait. The startup was one of the most funded startups in 2020 in the UAE, it raised $20.6 million in a Series A round in April 2020.
Upon completion of its new projects, the company will produce a variety of tomatoes, leafy greens, and berries, with plans to continue to diversify its offering in the future.
The capital raised through these transactions will be used to support Pure Harvest’s capacity expansions, attract new talent to the company’s fast-growing team, advance research & development activities (including various innovation projects in partnership with the Abu Dhabi Investment Office), and facilitate new market entry.
Natasha Hannoun from SHUAA, the region’s leading asset management and investment banking platform, commented: “At SHUAA, we have a strong track record in identifying businesses with market-leading propositions and teams and Pure Harvest fits this criterion perfectly. We witnessed Pure Harvest Smart Farms’ leadership in Agriculture Technology (AgTech), the strength of the team, and its proven ability to execute, giving us the confidence that Pure Harvest has significant growth potential as it seeks to address the need for food security within the Gulf and wider region.”
Gus Chehayeb, CIO of Sancta Capital, said: “Pure Harvest has proven that the Gulf can serve as an excellent agricultural base, where abundant sunlight, vast land, affordable electricity and labor, and ample CO2 can be optimized to beat the landed cost of comparable quality imported fresh produce from industrial greenhouses within Europe, resulting in compelling production economics. The company is enhancing the region’s food security, providing consumers fresher and more sustainable choices, creating local jobs, and driving lucrative opportunities for investors.”
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